MAG posts positive half-year results thanks to record-breaking passenger numbers
- UK’s largest airports group served 37.3m passengers between April and September
- MAG’s profit before tax was £139.6m
- Positive performance comes as the Group focuses on investment at its airports, including a £1.1bn programme at London Stansted
- The Group has retained its five-star GRESB ESG rating for the fourth year in a row
A record-breaking summer delivered a positive first-half performance for Manchester Airports Group (MAG), as it drove forward investment programmes at all its airports.
MAG, which owns and operates Manchester, London Stansted and East Midlands Airports, alongside travel services business CAVU, today published its interim results for the period 1 April – 30 September 2024. The Group reported an adjusted EBITDA of £378.1m at the half-year, up from £346.1m during the same period last year. Profit before taxation was £139.6m (FY24: £115.9m).
That was on half-year revenues of £768.5m (FY24: £705.6m). The strong financial performance was driven primarily by record passenger volumes passing through MAG’s airports during the summer season. Collectively, the Group handled 37.3m passengers across the first six months of the financial year, up 6.9% on the same period last year.
In recognition of its commitment to creating a more sustainable future for all, MAG was pleased to retain its five-star ESG rating for the fourth year in a row from GRESB – a leading independent sustainability benchmarking tool. This rating recognises the Group’s robust and credible approach to sustainability, focused on decarbonising aviation, inspiring the next generation of aviation professionals and supporting local communities. That was outlined alongside a wide range of other achievements in MAG’s recently-published annual CSR Report.
Manchester Airport
Manchester Airport welcomed 17.8m passengers in the first half of the year. Its rolling annual total hit 30m in September for the first time in its history, putting it in the same bracket as airports including La Guardia, in New York, and Melbourne Airport, Australia.
Manchester continued to attract a range of new short and long-haul carriers, underlining its role as the UK’s global gateway in the North. In July, Juneyao Air began its three-time weekly service to Shanghai – the first time a direct route to the Chinese city has been launched outside of London in the UK.
MAG also continues to make good progress on its Manchester Airport Transformation Programme. The 10-year project is due for completion in the second half of 2025, at which point more than 70% of all passengers will use Manchester’s new Terminal 2.
London Stansted
London Stansted served a record-breaking number of passengers in the first six months of the year, with 16.7m passing through its terminal. It has gone on to record its busiest ever day, in October, where 107,000 passengers passed through in 24 hours.
London Stansted already has more European connections than any other UK airport, and has built on this further with new routes including links to Dubrovnik, Sarajevo, Linz and Reggio Calabria. Emirates’ twice daily service to Dubai continued to be extremely popular with passengers, as the airline opened a new passenger lounge at the Airport for business and first-class passengers.
MAG also announced plans to invest £1.1bn in London Stansted over the next five years during the Government’s International Investment Summit, in October. The plans include the previously announced extension to the Airport’s terminal to enhance the passenger experience, alongside the construction of its on-site 14.3MW solar farm.
Last week, London Stansted published its draft Sustainable Development Plan (SDP) for the next 20 years. It sets out MAG’s updated forecasts, which indicate the airport’s existing runway could handle up to 51m passenger per annum with no change to the aircraft movements it is currently permitted to operate.
East Midlands
Over the six months, 2.8m people passed through East Midlands Airport. TUI grew its route network with a new service to Naples, while Jet2.com commenced a service to Symi. Eastern Airways switched its operation from Paris Orly to the central hub, Paris Charles De Gaulle, offering connections to destinations worldwide.
The airport’s cargo operations continue to perform well, handling more than 183,000 tonnes of freight in the period.
CAVU
CAVU delivered a strong first half, with revenues up 10% year-on-year and EBITDA up 13.5%. It now operates in 32 countries, across 286 airports, offering more than 3,000 products to airport passengers including lounges and car parking.
The division is preparing to open several new international Escape Lounges, including at Brisbane Airport in Australia, Northwest Arkansas National Airport and Kansas City International Airport in the US, and Luis Muñoz Marín International Airport in Puerto Rico. It recently launched aether, a private terminal that can be booked by passengers on commercial flights from Manchester Airport.
In October, CAVU announced its acquisition of Parkos, a European platform for airport car parking with more than 1,000 providers in 15 countries across the continent.
MAG CEO Ken O’Toole said:
“Across the summer, one in five UK air passengers chose to fly through a MAG airport for business, leisure, to study or visit friends and family.
"This is testament to the strength of our route networks, our commitment to providing great choice and value to all our customers, and to always striving to deliver a positive passenger experience.
"While our industry faces challenges both in the UK and globally, such as increasing taxation and rising costs linked to the push towards full decarbonisation of air travel, MAG’s strong financial and operational performance makes us well-placed to drive forward our investment programmes as we continue to grow.
"Looking ahead to the next six months, we will be working with the Government to recognise and maximise the benefits of international connectivity and infrastructure investment for UK plc."
MAG also delivered a strong operational performance during its record-breaking summer, with more than 99% of all passengers passing through security in 15 minutes or less at all three of its airports and positive customer satisfaction scores received across the board.
Recent data also showed high levels of passenger satisfaction across the Group. Between April and September, 97% of passengers rated their experience at East Midlands Airport as ‘Good, ‘Very Good’ or ‘Excellent’, with the figure standing at 91% at Manchester Airport and 87% at London Stansted.
This operational performance was cemented by findings in the CAA’s Annual Airport Accessibility Report which awarded the highest possible ‘Very Good’ rating to London Stansted and East Midlands’ services for passengers with additional needs, with Manchester Airport also rated as ‘Good’.
As part of the Group’s commitment to achieving net zero operations by 2038, MAG has introduced a growing fleet of Electric Vehicles (EVs) on to its airport campuses, and most recently receiving a new electric ambulift at East Midlands Airport to support passengers with additional travel needs.
The second half of this financial year will mark the final year of MAG’s current Corporate Social Responsibility (CSR) Strategy ‘Working together for a brighter future’, first published in 2020. The Group will publish its new Sustainability Strategy in the spring, which will set out a new set of commitments to the environment, skills and communities up to 2030.